Key Points:
- Coal India Q2FY26 Results: Profit fell 32% YoY to ₹4,262.64 crore due to lower sales and higher costs.
- Dividend: Interim dividend of ₹10.25 per share; record date Nov 4.
- Outlook: Output fell 3.9% in September but expected to recover as demand rises.
New Delhi, Oct. 30: State-run Coal India Limited (CIL) reported a 32% year-on-year decline in consolidated net profit for the second quarter of the financial year 2025-26 (Q2FY26), amounting to ₹4,262.64 crore. The Coal India Q2FY26 Results also fell 52% sequentially from ₹8,734.17 crore in the previous quarter due to lower sales and higher operating expenses.
CIL’s revenue from operations stood at ₹30,186.7 crore, down 3.2% compared with ₹31,176.3 crore in the same quarter last year. Sequentially, revenue dropped 15.8% from ₹35,875.5 crore in Q1FY26. Sales contributed ₹26,909.23 crore to total revenue, slightly below ₹27,271.3 crore recorded a year earlier.
The company, which is the world’s largest coal producer, saw total expenses rise 7.1% year-on-year to ₹26,421.86 crore, up from ₹24,670.70 crore in Q2FY25. Sequentially, expenses increased 3.6% from ₹25,493.12 crore.
“We faced cost pressures during the quarter due to higher overburden removal and wage-related expenses,” a company official said, while discussing the Coal India Q2FY26 Results.
Dividend announcement
Alongside the Coal India Q2FY26 Results, the CIL board declared an interim dividend of ₹10.25 per share. The record date for the dividend is set for Nov. 4, and payments will be completed by Nov. 28, the company said in a filing to the Bombay Stock Exchange (BSE).
CIL shares were trading at ₹382.90 on Oct. 30, up 0.24% from the previous close. The stock has fluctuated between ₹349.20 and ₹459.55 over the past 52 weeks.
Production impact
Coal India’s output has also been affected in recent months. The company reported a 3.9% year-on-year drop in coal production for September, totaling 48.97 million tonnes compared with 50.94 million tonnes a year earlier.
Coal Minister G. Kishan Reddy attributed the fall to heavy rainfall that disrupted mining operations across several subsidiaries. “Prolonged monsoon conditions hampered excavation and transport activities,” Reddy said earlier this month.
Despite the setback, the government continues to push for higher domestic coal production to meet growing power sector demand and reduce reliance on imports. Coal India accounts for over 80% of India’s coal output and remains a key contributor to the country’s energy supply chain.
Outlook
Analysts said the Coal India Q2FY26 Results highlight continued cost pressures and subdued demand from industrial users. However, they expect production levels to improve in the coming quarters as weather conditions stabilize and power demand rises during the winter season.
Coal India is also focusing on expanding mechanized mining and introducing new technologies to enhance efficiency. The company’s medium-term strategy includes increasing coal output to over 1 billion tonnes annually by FY2030 in line with national energy goals.
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